First Deal in Detroit? What do you think?

[Tereza Dyerova]

Hello Guys,

I was hoping you could help me with my decision.

I am planning to invest for the first time. I am based in California so I have to buy a property out of state. I am mostly in touch with Turnkey providers around Midwest. I almost bought a duplex in Chicago, but it did not work out, because the inspection was not the way I was expecting. I had a goal to invest by the end of this year , but things just did not fall into a place. Now I have 33 K for down payment and no house.

I started to think about Detroit as an investment option. I bumped into this deal in Dearborn Heights for 65K (attached). It is definitely not cashflowing the way I would like to, but I am also counting on the appreciation since the market is still growing, that is why I am considering it.

What do you think about Detroit and about this particular deal in Dearborn? I have heard this city is quite good.

I also have another possible deal in Taylor. The numbers look very similar, cashflow is a bit over $100/month after all the expenses. In general, most numbers on houses from Turnkey providers in Detroit look very similar - I am not super impressed, but in the same time,  I am still feeling that I need to get this city a chance as this is one of the little areas that seems to be getting better and has potential in the future.

What do you think? 

Thanks a lot in advance for your comments.

Tereza

[Dylan Vargas]

@Tereza Dyerova Welcome! I would pass for a meager $100 and I certainly wouldn't count on appreciation unless you have a local person and data that can support appreciation will happen in that city. Look at Cleveland and @James Wise (Holton Wise). I get their emails and they have some good deals that would fit better for you and much higher cash flow. I have lived in Michigan several times but not an expert on Detroit. Detroit is really street by street. Good luck and keep us posted.